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The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

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Us 9, Obama 6, America 5, Jill Kelly 4, Cia 3, Bob 3, Washington 3, Benghazi 3, United States 2, Nyse Euronext 2, Romney 2, Paula Broadwell 2, Karen 2, Fbi 2, Petreas 1, Allen 1, Diane Feinstein 1, John Boehner 1, George W. Bush 1, George Bush 1,
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  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    November 13, 2012
    7:00 - 8:00pm EST  

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run the market. i'm jim cramer see you tomorrow. >> good evening. this is the kudlow report. as america demands compromise, on growing the economy and avoiding the fiscal cliff. the president today hosted an old fashioned lefty summit filled with labor chiefs and foreign liberal groups. he went to them ahead of business and the politicians are going to come later on friday. they are going to consider mitt romney's plan. he lost the election but might his ideas win out in the end? plus obamacare, continues to take it's toll on jobs. and one ceo's comments about
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it's plan are spurring a national movement to eat pizza. 48 days until the biggest tax hike in the history of the planet earth. president obama put labor and local interest groups to who knows what. senate minority leader had the perfect response on the senate floor today please take a lis ebb. >> the amount of revenue that they are prepared to put usual over the cliff over wouldn't fund the government for one week. so why in the world would we want to do that? what is the point? to make people feel good about whacking somebody else. >> so what is your answer to what mitch mcconnel said?
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go after rich people. why do it at all? >> it is good to be with you. i think that the minority leader seems to have a math problem. ending the tax cuts for the rich is worth $1 trillion. i think our government spends a little less than $1 trillion. most people think it is $800 billion. this is a ten-year number. you are $80 billion a year. and this is a outside reach. a lot of guys like myself think you are not going to get it. let me ask you this, david, we have a weak economy, i know jobs are growing but they are growing weekly. what sense does it make to raise taxes on anybody when you have such a weak economy. from a economic, not ideal logical stand n point, what sense does it make? >> well, you know larlarry, the
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labor movement thinks that jobs are the number one agenda here, as you well know, we have had this conversation about your need to do something to get our finances in better shape, the way to do that with the least amount of damage to our economy, is to end the bush tax cuts for the wealthy for those making over $250,000 a year. that is where we have the least economic impact. >> i hear you on the idealology. >> that is economics. >> i don't agree with you on the economy at all. i don't know why you would punish anybody on a new business or investment. you are saying from what i gathered in the meeting with the president today. you don't want to have reforms of entitlements. and you don't want any
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reductions in social security or medici medicine, in medicaid. i don't get that. you are actually way to the left of where i think president obama is. >> well, you know, what president of the filcio today. we are with you in your effort to restore fairness to our tx system in the way that will be best for our economy, which is looking toward millionaires and billionaires and we said that we would not support and we were confident that they are likely to dig our economy.
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he has already come out for stretching the eligibility on the entitlements. i know that none of that stuff got done. you are further to the left than the president. i don't think the president wants to raise tax rates. i think he is ready to compromise to put a plan on tax deduction. you will get your rich people's revenues but you won't kill the economy. i think obama has a better position than you do. >> we can speculate on what the president's position might be. we can speculate whatl the leadr of the aflcio said. if we want fairness in our tax system and want to put the system on the right path we want to get the $1 trillion that
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would be involved in doing that. >> i know that. >> it is the least economically harmful way to do it. >> no, it is not. >> dame yen, you know what, you are terrific to come on the show. i want to get you on again. this discussion is going to go on for at least 48 more days. i appreciate you coming on very much. >> many thank. >> all right. so the president didn't meet with business leaders today. but he might want to listen to what one ceo is saying. snyder is under attack from the left for the audacity of trying to save his own business. we will have the details of the pizza counter attack in the second half of the show. there might be a republican tax
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plan that democrats like. republican when mitt romney floated the idea of capping tax deductions? big story in the "new york times" today. so, could this pave the way for a deal? maybe some real tax reformulator on. who knows. james free man of the "wall street journal" page. i saw the inner view. i think that president obama i'm givie ining him the benefit of doubt. and i'm going to say this, obama is to the right of the labor unions and the big laborral interest groups. you know why, i think obama is going to buy into his camp without raising the marginal tax rates and i think he will look at eligibility extension and cost of list reductions and i think he is a centerist right now. ji think he said we are going to
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compromise. if you are serious about it. he zoo tais talking to everybod. he is saying i'm going to talk to everybody. one other thing that i want to say, i was rereading the spees. president obama proposed this idea that then romney also proposed. so this idea has been out there for a while. but if we can agree on that flt that is the most important thing. number one the majority of the american support the position. math actually matters to the american people. >> you were doing so well until those last two points. james, you think i'm nuts? do you think there is not going to be a deal? >> because in all seriousness. after today's labor union meeting. so far i have not heard the labor union meeting.
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i haven't heard that. you go back to the president's friday statement and it was the campai campaign speech but as you suggest he said more tax revenues, but unfortunately, treasury secretary tim geithner said at the ceo council today you have to raise rates. >> he didn't get the memo. he is a busy guy and a good man. but he did not get the memo to which karen referred to earlier. one more point. james, let me ask you this. will the republicans stay tough on voting against higher marginal tax rates? will they not go wobbly on the tax rates but on the spending cuts we must have? how do you assess this post election story? >> this is a solid position they
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have? they are saying to the president, you want to take more money from the rich people fine. if you are looking for the least economically destructive way to do it, lower the deductions along with spending caughts. >> the majority of the american people have said they are fine with raising taxes if that is what it needs to be. folks are going to hold the line and i will tell you why. look at how scripted john boehner had to be when he said revenue. where democrats fell out of their chairs. he had to do it with a t ee teleprompter. >> god bless him. raising tax rates is not the answer to this. >> but you know what, look. i know karen, other democrats
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believe they got this great mandate. but house republicans believe they got a mandate to put a check and balance on senate democrats as well as the president. so we are going to have to have a compromise for a change. >> we have a mandate and for president obama you would hope that he would start thinking now about what is his legacy and does he want to leave office with a terrible economy. i don't think in year eight he is going to be able to blame george bush. he ought to start thinking about economic growth. this is probably the least harmful way. > exit polls show that that george w. bush hurt romney tremendously.
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>> the polls are the polls. but the point i'm making in the second term, it is president obama's don mi aeconomy and def. he is going to have himself a hard time. thank you. >> so the fed's so called safety net under the dreaded resection. richard fisher is going to join me next up to talk about that. later on the list of companies because obamacare is growing. hope they don't forget that during these deliberations. i'm kudlow we will be right back. two years ago, the people of bp made a commitment to the gulf. bp has paid over twenty-three billion dollars to help those affected and to cover cleanup costs.
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does president obama's re-election pave the way for the printing presses? thank you richard. we appreciate it at all ways. let me just ask you.
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if the worst-case scenario comes and taxes go up $500 billion at the end of the year and we go into the recession as the others say, what should, but in your judgement what should the fed do anything about that? >> larry, this is prosecutorly my opinion. but so far we have been trying to stoke recovery with monetary policy. it would be nice to have the fiscal authorities get their act together. there is a limit to what we can do. we can't have a buzz lightyear upontary policy to infinity and beyond. every time we purchase the security. and now it is out to almost eight years. we aren co encumbering those up
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us. i want the congress to make them. in 449 days, if the case comes about. just to make this harder, say the big tax hike kicks in, the first quarter goes negative, and they don't get a deal together,together, the second quarter goes negative, will they have to buy more? does the central bank see it self as a safety net position if congress and washington are as irresponsibilit irresponsibilityable as they are? >> i do not see us as that safety net.
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if we keep violating that, then we have bad policy. there is a limit. we have to discuss what that limit is. i haven't been in favor of that. i have lost that argument. but we can't continue down the road of infinite expansion of policy. he gives these guys the position of what not to do. it has been the great enableler. >> we have done our duty. inflation right now is under control and expectations are under control. i'm fully confident in arguing that. the second mandate larry is we need to create the conditions for full employment and that is
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where we get into a deep trap where we go on forever. if we do -- >> let me ask you today. vice chair janet young. one of the things that she said. she believes based on various computer models that the target rate should be early 2016, that is the longest out there. what do you make of that? early 2016. each of us has an opinion. she is speaking for herself. what our concern is, this is
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about job creation. we have to build confidence in the job creators and until we give them clarity. they are going to hold back. if we have temporary fixes it is time for them to get their act together. >> do you think that is the way to create jobs? >> i'm not arguing that at all. they don't know anything. they don't know the costs of what the initiatives are going
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to be. both democrats and republicans have to figure out what counts the most. that is the route to dignity and the route to prosperity. no business can plan. they were unique in washington and we can't carry the ball. >> in a nutshell, how does the economy look to you? our job growth is running above 3%. we have other sections of the country not running so well. it is just a number and the second half of this year? but that is not enough to create the jobs that will put the american people back to work. that will not happen until the
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politicians get their act together. >> i must say, sir, i couldn't agree more. i think you are debt right. >> thank you. >> the idea solving the fiscal cliff crisis with tax deductions may raise revenue from the wealthy. the full story on that coming up next. well, if it isn't mr. margin. mr. margin? don't be modest, bob. you found a better way to pack a bowling ball. that was ups. and who called ups? you did, bob. i just asked a question.
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it takes a long time to pack a bowling ball. the last guy pitched more ball packers. but you... you consulted ups. you found a better way. that's logistics. that's margin. find out what else ups knows. i'll do that. you're on a roll. that's funny. i wasn't being funny, bob. i know. i'i invest in what i know.r. i turned 65 last week. i'm getting married. planning a life. there are risks, sure.
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i don't know if i want more revenue. i'm afraid my friend treasury geithner. and at least give you real numbers on this. >> one of the criticisms is that it would be another gift to the wealthy. let's take a look. the tax policy center found that if deductions were capped at
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$25,000. people making more than $200,000 they would account for 71%. as for revenues, the big question, the solution races for money. three times as much. cutting deductions could be difficult and could disrupt the economy. it raises a lot more money. i don't know if i like handing that revenue to the government. but i think your numbers are right. i think that $1.3 trillion number came from one of the
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original treasury studies. it could be treasury. is america becoming a nation dependant on government? in 30 minutes we are going to ask radio host larry elder that. >> now switching gears slightly to french film star. became a tax refugee today. the latest rich frenchman to escape the tax rates. he signed the papers on an ap t apartment on a town across the
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borders ever since the 75% tax rate took effect. my take, these are smart guys. my second take president obama you are going to lose a lot of valuable assets and you humans if you jack up tax rates too far. one outcome of this election obamacare is here to stay. that brings us to the employer mandate as they are forced to announce layoffs and lots of them. ♪
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friday is papa john's appreciation day. that is right. started on facebook by a fan named daniel wetter. john has a problem with obama care.
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many franchiz operators are going to cut hours to part-time to comply with the cost. show up to papa john's on friday with economic freedom on top. coaccording to the watchdog gro, freedom watch, growing companies are citing the healthcare law. >> if i'm forced to do this, what will i tell those people whose jobs i will have to eliminate? the cost of your plan is simply a cost that will cause us to eliminate jobs. >> all right. that principle has not gonna way. to talk more about the economic evils of the employer mandate
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here now is betsy mccoy. welcome back. so one of the things that we know about the questions of this election is that obamacare is going to survive and then some. tell me about the employer mandate it is the one that herman cane is talking about. it is going to cause workers their job all together. this law says that employers with 50 or more full time workers have to provide insurance. a one size, fits all, plan that costs about twice as much that many employers currently offer. it adds 1.79 per hour to the cost of hiring a full time worker. if you are adding entry level
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people. >> i don't think my neurosurgeon is going to like that. >> let me ask you this, it is plies to companies with 50 or more. now, in terms of hours worked it applies to 30 hours and they are knocking them down to 28 hours? is. >> you are going to hit many fast food places and ours say ing at least a third of employers even higher for those who know the details with this law. >> that thing looks frayed. companies that continue to have full-time employees are going to have to pay a fine. and that is every hour. >> if these firms, they take the insurance off and send the workers into the exchange pool
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and medicaid. that is going to boost the cost. i don't think that is figured into the estimates. >> the government actuaries have said. fewer will get the insurance. only washington could create a mandate that reduces the northbound number of people who get the insurance. >> they go into the pool. >> or number of people who work at domino s pizza. lower paid people. they will be eligible people for other states. some of them are going to be unemployed because states have the option of joining the expansion and right now they don't have to. if you have a person working at the pizza joint who doesn't have kids that person is going to be
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uninsured under this law. >> under this law, if you sell your house, you have to pay another 3.8% surtax on that? do you think people know that? home sales? >> there are a lot of surprises in this law that people are beginning to realize. if you sell your house and make a gain that pushes your income. you have that in addition to that capital gains tax. >> you heard it there. >> the reputation of our national security is at stake. this david petreas sex scandal is tarnishing his administration. please stay with us.
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going to have to work out is whether or not general petraeus is going to have to testify about this benghazi issue. he was scheduled to testify on thursday. jill kelly was allegedly involved in e-mails. there is some question about the appropriateness or inappropriateness of the e-mails. now paula broadwell in the upper left is the biographer of former general petraeus and was also
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having an affair. and began sending parolely arasing e-mails to kelly. kelly called the fbi and asked them to investigate. one of the fbi agents become obsessed with jill kelly and sent her a shirtless picture of himself. he was later removed from the case because of his role in it. the president thinks highly of general allen and his service to his country. as well as the job he has done
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in afghanistan. the president has hut on hold general allen's nominition pending the investigation of general allen's conduct. >> folks close to general allen have been telling nbc that allen did not have an affair with jill kelly. but nothing untoward or in appropriate wend on between allen and jill kelly. is in any quarterly from the camp about this testifying as a pry variety citizen? any controversy about that? we don't know yet.
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would he be put under oath if he testified up on capital hill and that would behind closed doors if he does. >> thank you very, very much. i want to know if general petraeus was compromised during the investigate and shortly after he returned from benghazi. here now is former deputy secretary of defense. general petraeus is a great man. but he made a huge mistake. what i want to ask you here. give me your opinion yes or no. he was under investigation he knew that, did that force him to take the white house line on the video and the spontaneous demonstration a line which was itself denied and rejects by the
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cia station chief? i think he is a political an mad. reports from other people who were confirming that he was coming to the four as the cia direct director. anyone who is engaged in mar tall infidelity is compromised to some degree. he will give up all secrets and i think he should and we need to know what he knows. >> paula broadwell in a speech some place. she used what we thought was classified information that the cia had taken prisoners in benghazi and that is long after the statute had run out and not been renewed.
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general petraeus went there and in correctspected there and had anything about that. is it possible that he went along with the white house because he didn't want anyone mucking around in the cia prisoners? >> we are talking about an s executive order signed by president obama. however, there is eye believe a small loophole allowing the cia to keep people for up to two or three days. he may not have wanted to have been caught in doing that. it is a big embarrassment for the president. i think the big issue here whether or not those two or three people were held or released. the issue is what happened during the attack on the consulate and the cia an ex.
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i think the general will be in a better position to talk about the forces that could have been brought into play there but were not. >> he has got to tell us. it is what rumsfeld has reported as known or unknown. >> it is keystone cops. the department of justice knew about this. nobody bothered to tell the president about this? >> it is one or the other. sometimes we give obama more than he deserves. they could be strumbling over their feet over there it should have been told to the president
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and the house and senate committee chiefs and it was not. i think diane feinstein is justifiable ripped and she is going to get even somehow >> i'm not blaming president obama for all of this stuff. what looks like has happened is his national security team has broken down on this. it just broke down. it is only going to get worse. >> a lot of people my friends in the military they are going to be resigning in droves. it is going to be ugly. >> we'll have you back to talk about that one. breaking news a major resignation in the wake of hurricane sandy. the chief of the long island power authority is stepping down. mike hurvay is announced his
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resignation as thousands of customers are still without power. but the top man is now out. we thank jeb for his insights. coming up what is in store for the future of this country and can the gop still sell free market commissions to the nation? radio talkshow host larry elder is going to join me next up. [ male announcer ] you are a business pro. governor of getting it done.
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okay, president obama is re-elected. now is thereltheresy future for market capitalism in the united states? >> are we becoming a nation that is welfare dependant? things that made the election is
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that where we are going? >> that is where we are right now. i don't know. when you are making an argument that i'm going to reduce your taxes and you don't pay taxes that is not a sellable argument. 50% of voters can pull the lever and vote themselves a raise. >> 50% is the number of dependants in one way or the other. from the federal government. so the income tax payment is low. but thing that troubles me. i did write a column asking about the impact.
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the great society failed. we are creating the great society again. the family break up has had a great break up. >> welfare -- obama is loseening those requirements. the unemployment rate is 14.3%. emanuelle cleaver, the head of the black congressional caucus, if under 14% we had a white house person, we would be marching on the white house? >> how do you assess that. i'm going to ask you what republicans could do about that. unemployment is high for hispanics as well and they voted for obama. >> black people have been convinced that the democratic
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wears the hat against racism when in fact that racism is no longer a major problem in america. >> did romney lose because he only had 27% of the hispanic vote. ? >> he lost because of the exit pollings. half the american people believed that he only cared about rich people and that obama felt their pain. >> how does the gop redo, reconsti toot the me reconstitute the message. and that this government welfarism is going to increase poverty not reduce it. how do you sell that? >> to speak to people like they are adults not children.
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often they don't talk about issues or the fact that when you raise taxes you create the situation that you have fewer jobs. when i talk to black people about social security they get it. when i talk to black people about having choice in education they get it. >>. >> my great late friend and mentor jack kemp used to always talk about a free market society and low tax society because it would help the minorities the most. why can't the gop go into the halls. go into the projects and kemp used to go in all the time and
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make the case.about ownership. >> a republican mayor asked me the same thing and i said have a press conference and look white people in the eye and talk about all the things that you have done. still i got little black support. talk to them and say i'm tired of being called a racist. you are not oppressed and stop acting like that. he said i can't say that. >> i said meeting is over. >> why can't he say that? >> how can you do worse? >> these are economic questions. and they are economic statistics. and jack kennedy was loved by black people. he said if you want to raise tax revenues you must cut tax rates. >> i worked for reagan and i
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think we have to get out of here. >> great stuff. i want to get you on the radio and talk about your book. that is it for this evening's show. food for thought. free market capitalism gives you the opportunities to get out of poverty. government dependancy will sink you deeper into poverty. we will be back tomorrow night.
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